Joint accounts are created for many reasons, including to have
shared access to funds, to have a shared place to save funds, to
avoid payment of probate tax on the funds, and in some cases, to
make a gift of the funds on death. Financial Advisors can play an
important role in helping maintain their client's objectives
and reducing litigation over the jointly held funds when an account
holder dies.
When one account holder dies, the funds may either form part of
the deceased's estate and be governed by the deceased's
Will, or they may pass to the surviving joint owner(s) by right of
survivorship. The treatment depends on (1) the relationship of the
joint account holders; and (2) the intention when the account is
made joint.
